Klarna Launches KlarnaUSD: A Stablecoin for Faster, Cheaper Global Payments

Klarna, the Sweden-based digital bank and “buy now, pay later” giant, has announced the launch of KlarnaUSD, its first stablecoin designed to reduce cross-border payment costs and accelerate merchant payouts. The U.S. dollar-backed token, built on Stripe’s Bridge infrastructure and set to debut on the Tempo blockchain in 2026, marks a pivotal shift for a company whose CEO, Sebastian Siemiatkowski, was once skeptical of crypto. This move positions Klarna among major fintechs embracing stablecoins as a core part of global payments.

KlarnaUSD: Addressing $120 Billion in Annual Cross-Border Fees

KlarnaUSD is fully backed 1:1 by U.S. dollars and high-quality reserves, ensuring stability while enabling near-instant settlements. The stablecoin targets the inefficiencies of traditional cross-border payments, which generate an estimated $120 billion in annual transaction fees. By leveraging blockchain, KlarnaUSD aims to slash these costs for consumers and merchants, supporting use cases like refunds, payroll, and international transfers.

Siemiatkowski commented: “With stablecoin transactions already at $27 trillion a year, we’re bringing faster, cheaper cross-border payments to our 114 million customers.” The token is currently live on Tempo’s testnet for advanced testing and prototyping, with a public rollout planned for 2026.

• Backing: 1:1 with USD and cash equivalents.
• Infrastructure: Issued via Stripe’s Open Issuance by Bridge; on Tempo mainnet.
• Target Use: Merchant payouts, refunds, global settlements.

Partnership with Stripe and Tempo: Building Payment-Focused Blockchain

KlarnaUSD is the first stablecoin issued by a bank on Tempo, a payments-focused blockchain developed by Stripe and Paradigm. Tempo emphasizes scalability and compliance, making it ideal for high-volume financial applications. The integration deepens Klarna’s existing relationship with Stripe, which powers payments across 26 global markets for the fintech.

Bridge, Stripe’s stablecoin infrastructure, handles issuance and redemption, ensuring regulatory alignment under frameworks like the U.S. GENIUS Act. Klarna plans to fully embed KlarnaUSD into its services, allowing users to spend stablecoins seamlessly at checkout or receive instant refunds.

Broader Context: Stablecoins Surpass Traditional Networks

The launch comes as stablecoin transaction volumes have reached $27 trillion annually, according to McKinsey, with projections that they could overtake legacy payment networks before the decade ends. Klarna’s entry follows similar moves by PayPal (PYPL) and Western Union, reflecting fintechs’ push into digital assets for efficiency gains.

Klarna, with $112 billion in annual gross merchandise volume (GMV) and 114 million customers, has the scale to drive adoption. The stablecoin will initially focus on testing and integration, with full consumer availability in 2026.

Implications for Klarna and the Payments Landscape

KlarnaUSD represents a strategic evolution for Klarna, transitioning from buy-now-pay-later services to a broader digital banking platform. By reducing cross-border friction, it could capture a slice of the $120 billion fee market, enhancing margins and user experience. The partnership with Stripe and Tempo positions Klarna at the forefront of blockchain payments, where stablecoins enable sub-second settlements at fractions of traditional costs.

As regulatory frameworks like the GENIUS Act mature, Klarna’s launch signals accelerating mainstream adoption of stablecoins for everyday finance.

In summary, Klarna’s KlarnaUSD stablecoin, backed by Stripe’s Bridge and launching on Tempo in 2026, targets $120 billion in cross-border fees, bringing instant, low-cost payments to 114 million users and positioning the fintech as a leader in digital asset integration.